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DEFINITION of 'Federal Poverty Level-FPL'. The set minimum amount of gross income that a family needs for food, clothing, transportation, shelter and other necessities. In the United States, this level is determined by the Department of Health and Human Services. FPL varies according to family size. The number is adjusted for inflation and reported annually in the form of poverty guidelines. Public assistance programs, such as Medicaid in the U.S., define eligibility income limits as some percentage of FPL.
The U.S. Census Bureau defines âdeep povertyâ as living in a household with a total cash income below 50 percent of its poverty threshold. According to the Census Bureau, in 2015 19.4 million people lived in deep poverty. Those in deep poverty represented 6.1 percent of the total population and 45 percent of those in poverty.